Correlation Between Integral and Playtika Holding

Can any of the company-specific risk be diversified away by investing in both Integral and Playtika Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Integral and Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integral Ad Science and Playtika Holding Corp, you can compare the effects of market volatilities on Integral and Playtika Holding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Integral with a short position of Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Playtika Holding.

Diversification Opportunities for Integral and Playtika Holding

0.4

Correlation Coefficient

Integral  Playtika Holding

Very weak diversification

The 3 months correlation between Integral and Playtika is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp and Integral is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Integral Ad Science are associated (or correlated) with Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Integral i.e., Integral and Playtika Holding go up and down completely randomly.

Pair Corralation between Integral and Playtika Holding

Considering the 90-day investment horizon Integral is expected to generate 4.08 times less return on investment than Playtika Holding. In addition to that, Integral is 1.86 times more volatile than Playtika Holding Corp. It trades about 0.02 of its total potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.12 per unit of volatility. If you would invest  747.00  in Playtika Holding Corp on September 13, 2024 and sell it today you would earn a total of  80.00  from holding Playtika Holding Corp or generate 10.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Integral Ad Science  vs.  Playtika Holding Corp

Integral Ad Science

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Playtika Holding Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Playtika Holding Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Playtika Holding may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Integral and Playtika Holding

The main advantage of trading using opposite Integral and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Playtika Holding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Playtika Holding will offset losses from the drop in Playtika Holding's long position.

The idea behind Integral Ad Science and Playtika Holding Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.